Economic instability, populist politicians and a refugee wave is changing the face of politics in Europe Another round of elections, another push from increasingly vocal nationalists. Austria’s far-right Freedom Party gave the Social Democrats a run for their money in local elections over the past weekend, but fell short of capturing Vienna’s mayoralty. What started as an oddity in European politics has quickly become a disturbing pattern. These five facts explain the rise of the radical right in Europe, its causes and its implications for the region.

Ms. Lagarde was even more explicit, making it clear that governments had for too long relied on the supply of cheap cash from central banks that have been running ultra-loose monetary policy. “Monetary policy alone will not cut it,” she said. “It is necessary, it is recommended from our perspective, particularly in Europe and in Japan still, but it will not cut it on its own. “Clearly in the fiscal sphere as well as in the structural reforms sphere, more needs to be done, and it needs to accompany and eventually take the baton from the central bank governors.”

[A] look at the post-crash global economy, is the first fruit of that freedom. After toeing the line for five years, he can go public with his criticisms of chancellor George Osborne’s handling of the economy. He warns that the emphasis on consumption rather than investment, the continuing reliance on house price inflation as the driver of growth, the decline in productivity and innovation mean fundamental problems are not being addressed. He is also the first minister to lift the lid on the coalition: we learn the Tories could be likable colleagues but “collectively appalling, with ugly tribal prejudices”; that Osborne and David Cameron were unable “to move Theresa May an inch”; that Osborne’s Treasury effectively controlled government, with a hands-off Cameron; and that, in Cable’s view, Nick Clegg and Danny Alexander were too accepting of the Treasury line. [...] [ Cameron the PR man, being in office for the sake of just being in Office ] &! bit.ly/1KROBLk

- shown hurting growth. US growth is dependent on consumer spending. stupid. hacking off the only leg one has is not smart. // established economic truth ! Paul Krugman: Inequality Actually Bad for Growth - youtu.be/cRMi8_M681U &! Paul Krugman & Tony Atkinson in Conversation | Inequality and Economic Growth - youtu.be/3l6E3mUNW70 &! &! What's Really Driving Income Inequality: Orszag - youtu.be/XJ_raBX7oq8 ( only added value jobs STEM - pays for work and shows wage growth, not so in service sector jobs. UK recovery showed it; lots of service sector job creation than any other type of job + Lohnzurueckhalting (no leverage to demand higher wage than just minimum wage or little above bc outside the door waits the one who will replace you) = no wage growth in the first couple of years of recovery and no productivity growth and persistent output gap (below potential) )

Earlier reporting reveals that following talks last week in Berlin with Merkel, Hollande complained that nothing of substance was achieved; it was purely for show. Hollande had found the chancellor fixated on the Fiscal Pact and above all on Greece, on which he claimed she had given up and was unwilling to budge. // Angela (Germany) put(s) national and personal political interests first second third and last .... // symptoms of our time, even politicians jump on "everybody for himself" //

Tony Dolphin, senior economist at the Institute for Public Policy and Research, warned that Osborne's planned cuts were "implausible". "Given the scale of cuts in the public sector, [the OBR] can only make its growth forecast add up by assuming that consumer demand is boosted by households taking on more debt - and at an unprecedented pace. "Extraordinarily, the OBR thinks that by 2019 the household sector will have a financial deficit twice as big as in 2007 and 2008 when the financial crisis hit. As result, the household debt-to-income ratio is forecast 2 rise beyond its pre-crisis peak 2 over 180%. "This is pretty implausible. If the next government tries 2 follow the deficit reduction path set out in the Autumn Statement, it can only succeed in the short-term because the household sector takes on debt @ a faster pace than it did before the financial crisis. [this warning was heeded some years ago alrdy that consumer&corp would have to take on debt to spend to keep GDP # up!!!]